1. What is NOT a cash outflow?

A. Additional operating costs

B. Initial investment

C. Repairs

D. Residual value

2. What is capital budgeting?

A. It is not critical for any business.

B. None of the choices are correct.

C. The process of making capital investment decisions.

D. When a capital asset is required.

3. What is NOT a capital budgeting method?

A. Payback

B. NPV

C. PRR

D. IRR

4. What is a disadvantage of Payback?

A. Used to screen investments.

B. None of the choices are correct

C. It is easy to compute.

D. It ignores all cash inflows after payback has been met.